Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, lithium-ion battery maker A123 Systems (Nasdaq: AONE) has received a distressing two-star ranking.

With that in mind, let's take a closer look at A123's business and see what CAPS investors are saying about the stock right now.

A123 facts

Headquarters (Founded)

Watertown, Mass. (2001)

Market Cap

$1.8 billion


Electrical components and equipment

Trailing-12-Month Revenue

$90 billion


CEO David Vieau (since 2002)
CFO Michael Rubino (since 2004)

Trailing-12-Month Return on Equity


Price-to-Sales (AONE and Industry)

19.9 and 1.5


Sony (NYSE: SNE)
Valence Technology (Nasdaq: VLNC)

Highly Rated Industrial Equipment Alternatives

Eaton (NYSE: ETN)
General Electric (NYSE: GE)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 17% of the 208 members who have rated A123 believe the stock will underperform the S&P 500 going forward. These bears include TheBadDad and All-Star TheGrtGdOM.

Just last week, TheBadDad warned that A123's stock price seemed dangerously charged: "20 x sales? ... Never a profit? Does the world really need this many battery makers?"

In a pitch from late last year, TheGrtGdOM expands on why the stock should start to lose power:

The company has a future but it does not deserve a valuation of over $2 billion. No way. Yes it will have some GE megabattery utility business -- but that makes it worth an [Altair] (market cap $90 million). Chysler was its only US major auto and their [electric vehicles] program is stalled. Certainly it won't be major growth in the next 3-5 years. Their entry into the China market is a co-venture with SAIC with factories to yet be built and a minority stake? With competition from the likes of the way undervalued [China BAK Battery] (major factories ready to produce and several letters of intent) and BYD? No way.

What do you think about A123, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. ABB is a Motley Fool Global Gains pick. The Fool owns shares of AZZ. The Fool's disclosure policy always gets a perfect score.